Operations and Business Combination - As of March 31, 2024, the company had not commenced any operations except related to the prospective Merger, with all activities focused on formation, IPO, and searching for a Business Combination target [118]. - The company entered into a Merger Agreement with Huajin (China) Holdings Limited, with an agreed valuation of $250,000,000 for the Business Combination [121]. - A deposit of $330,969 was made by Huajin to the company, which will be used to extend the time available to complete a business combination [122]. - The Merger Agreement was amended to extend the termination date for the proposed business combination transaction from March 23, 2024, to June 28, 2024 [123]. - The company intends to use substantially all funds held in the Trust Account to complete an initial business combination, with remaining proceeds used for working capital [138]. Financial Performance - For the three months ended March 31, 2024, the company reported a net income of $143,504, driven by interest income of $785,928 from investments held in the trust account [126]. - The company generated gross proceeds of $57,500,000 from the IPO of 5,750,000 units sold at $10.00 per unit, including the full exercise of the over-allotment option [129]. - As of March 31, 2024, the company had a working capital deficit of $1,026,668, an increase from $382,204 as of December 31, 2023 [133]. - The company incurred operating expenses of $648,672 for the three months ended March 31, 2024, which included costs related to being a public company [126]. Administrative and Consulting Expenses - The Company has accrued administrative service expenses of $30,000 for the three months ended March 31, 2024, compared to $0 for the same period in 2023 [145]. - As of March 31, 2024, the Company had service fee payable of $120,000 due to the sponsor, an increase from $90,000 as of December 31, 2023 [145]. - The Company engaged Asian Legend International Investment Holding Limited as an advisor, agreeing to pay a cash fee of $100,000 per month starting from October 2023 [148]. - The Company has accrued consulting service expenses of $600,000 as of March 31, 2024, up from $300,000 as of December 31, 2023 [148]. Underwriting and Financial Obligations - The underwriter was paid a cash underwriting discount of $1,150,000 and is entitled to a deferred fee of $2,012,500, contingent upon the completion of a business combination [147]. - The Company has a promissory note of up to $500,000 from the sponsor, which is due at the earlier of the closing of the Proposed Public Offering or the decision not to conduct the offering [141]. - The Company is obligated to pay the sponsor a monthly fee of $10,000 for administrative services, which may be delayed if funds are insufficient [144]. - The Company granted the underwriter a 45-day option to purchase up to 750,000 additional Units at the Initial Public Offering price [146]. Accounting and Financial Reporting - The fair value of private warrants is subject to re-measurement at each balance sheet date, impacting the financial results significantly [150]. - The Company is currently assessing the impact of new accounting standards on its financial position and results of operations [152].
Oak Woods Acquisition Corp(OAKUU) - 2024 Q1 - Quarterly Report